Time to dial up telcos

A file picture shows visitors walking past a 5G logo during the Mobile World Congress on the third day of the MWC in Barcelona, on Wednesday. Sym thinks investments in fibre and 5G will be adequately remunerated. – AFP

WE wrote last year about our expectation that inflation would soon start to re-emerge in Europe, and that banks were likely to be among the chief beneficiaries. This scenario has indeed come to pass, perhaps even more quickly than we had anticipated. With signs of inflation becoming ever more apparent, which other sectors should investors now be considering?

The latest data put UK inflation at 1.8% in January 2017, close to the Bank of England’s target of 2%. Eurozone inflation for January is also estimated at 1.8%. The global economic cycle looks to be enjoying a synchronised pick-up that is feeding through into positive earnings momentum, particularly in the eurozone.